If you have to pay taxes on virtual property, can you insure your virtual property? Sunday’s New York Times picked up the theme in The Game is Virtual. The Profit is Real (5/29), which discussed the growing market for virtual property used in on-line games like Second Life, The Sims, Ultima Online, World of Warcraft. Players buy and sell virtual property on sites like eBay, Ige, and Gamingopenmarket, with the Times noting annual profits of 25k, 100k or more taxable to the gamers. Some of the sites even allow on-line charitable contributions. Link.
TaxProf Blog: Virtual Games, Real Taxes